Original reporting on little-known U.S. government funded foreign aid projects, so-called "drug war" initiatives, and overseas business subsidies.

Mexico

06/06/2014

New guide for corporations, foreigners to game U.S. taxpayers

The Obama administration has taken its corporate-welfare road show to Mexico, where American taxpayers funded a three-day conference over the last week, with an aim to simultaneously subsidize U.S. industry while helping Mexico tap into the U.S. Treasury to fund its national infrastructure plan to the tune of hundreds of billions of dollars.

Among the highlights of ConnectMEX – the U.S.-Mexico Transport and Telecom Conference – was the U.S. Trade & Development Agency’s unveiling at this Mexico City venue of a “Resource Guide for U.S. Industry on Priority Infrastructure Projects.”

USTDA – an independent White House agency – in its ConnectMEX promotional materials simply tout the guide as a roadmap containing “detailed descriptions of project opportunities” for the U.S. transportation and telecommunications sectors.

However, the resource guide not only cost U.S. taxpayers $100,000 to create, but serves as a vehicle for both U.S. businesses and the Mexican government to obtain contracts and grants paid for by the American people.

Among potential options for this modernization effort involving hundreds of billions of dollars is financing through governmental institutions such as the U.S. Export-Import Bank, or Ex-Im, and the Overseas Private Investment Corporation, or OPIC.

USTDA in last year’s bid request for the resource guide explicitly directed the contractor to contact Ex-Im Bank, OPIC, and private/commercial institutions to obtain such information on behalf of Mexico, the host nation “Project Sponsor.” The document also specified that the contractor must evaluate this financing data to ensure “which options represent the best value” for Mexico.

“USTDA is sponsoring ConnectMEX to help establish stronger transportation and telecommunications connections between Mexico and the United States,” Director Leocadia I. Zak said during the event’s opening remarks. “We are proud to connect industry-leading U.S. experts to Mexico’s plans to enhance its infrastructure in order to improve the daily lives of its people.”

The amount of that grant – which USTDA is giving to the Asociación Mexicana de Ferrocarriles, Mexico’s national railroad trade association, is unclear, as USTDA announced the grant without revealing its value.

One conference attendee claimed it was a $150 million, though that amount is highly unlikely in the context of past agency grants. An email and separate tweet sent to USTDA was acknowledged, but clarification on the amount was not given by deadline.

The railway grant will support the Mexican industry group’s efforts “to modernize its fleet of specialized freight railcars.

“The project will recommend specific investments in new systems, services, terminals and railcars to meet the projected growth of freight transportation in the country.”

USTDA said it also plans to release “a complete Resource Guide to highlight additional projects in Mexico’s energy, water and environment sectors.”

While USTDA arguably is a relatively small agency – its FY 2014 budget request is just under $63 million – it consistently undergoes criticism along with calls for closure. Former Rep. Ron Paul and free-market think tanks such as the Cato Institute regularly denounce it as among the most duplicative and wasteful of all federal entities.

USTDA, Ex-Im Bank and OPIC consequently are among the most egregious examples of “corporate welfare waste,” the Cato Institute concluded in a 2005 report. These and similar organizations “should be terminated,” contends the report’s author, Chris Edwards.

Totals for previous Ex-Im Bank and OPIC financing of Mexican infrastructure projects were not readily available for this report, but a search of prior USTDA initiatives reveal numerous efforts to arrange U.S. backing of such projects.

USTDA under Obama has financed a multitude of other transportation initiatives that simultaneously benefit the Mexican people and U.S. businesses, courtesy U.S. taxpayers.

Multiple DMs and feasibility studies for airport modernization and expansion initiatives, as well as for numerous environmental endeavors, have received USTDA funding since Obama first took office.

Some of these endeavors precede Obama and took place under the George W. Bush administration.

The agency under Bush was equally generous to the Mexican government, which likewise received grants to explore financing options for infrastructure as well as “green” projects.

Bush’s USTDA in 2006 paid for a DM whose aim was to help Mexico achieve closer parity with the “strength and competitiveness” of the U.S. and Canada¸ its North America Free Trade Agreement, or NAFTA, partners.

Despite the overall viability of this trading block, USTDA at the time lamented that Mexico “suffered from lost manufacturing jobs to Asia and is searching for methods to regain its competitiveness,” according to the DM for the Mexico Secretariat of Communications & Transportation Multimodal National Plan.

“One of Mexico’s solutions to increasing competitiveness is to capitalize on its geographical proximity to the U.S., offering more secure and efficient trade transportation networks with the U.S. and thus Canada,” the agency said in that endeavor.

USTDA similarly financed an analysis of Mexico’s planned modernization of Tijuana as a modern transportation center just south of the California border.

Recently USTDA separately awarded a $50,000 grant to KED Group to assess Mexico’s needs in an “intelligent transportation” project in the State of Jalisco.

The agency last October awarded a $50,000 contract to the Seneca Group to conduct a DM on behalf of the Mexican Association of Railroads. That endeavor’s purpose was to help USTDA decide whether to help fund additional projects supporting “the development of Mexico’s freight rail system, which is a critical component of Mexico’s economy and trade.”

Potential projects were to include assessments of railroad infrastructure “to accommodate the transportation of various oil and gas products.”

It remains unclear whether that project is a predecessor activity to the USTDA grant announced this past week at ConnectMEX. Often the agency will conduct a DM before carrying out a more expensive and detailed feasibility study of the same project.

USTDA separately agreed to provide a $455,000 grant to the State of Puebla Secretariat of Transportation to conduct a feasibility study of a proposed “intelligent transportation system” project.

Puebla authorities reached out to the administration for help because the “demand for public transportation is expected to increase at an even higher rate than its population growth.”

U.S. officials agreed that the development of bus rapid-transit systems along six of the Puebla’s key corridors would “provide significant benefits to Puebla’s population in terms of improved convenience and safety, shorter travel times, and reduced environmental impacts.”

The Monitor's Peacock had reported on those projects as part of a broader review of Mexico-specific, U.S. funded initiatives. However, in contrast to the USTDA intelligent transportation system and railway endeavors – which must hire U.S. contractors — the U.S. Agency for International Development is prohibiting U.S. contractors from participating in a recent assistance scheme.

The ConnectMEX conference was carried out for USTDA by the Business Council for International Understanding, or BCIU, a New York non-profit whose stated objective is to “facilitate dialogue and action between business and government to promote international understanding.”

BCIU is led by Chairman Ahmet C. Bozer, a Turkish businessman and president of Coca-Cola International, as well as BCIU President Peter Tichansky, who also serves on a United Nations advisory board “to build a permanent UN memorial to the trans-Atlantic slave tragedy.”

A similar version of this article originally was published via WND.com on June 1. Under agreement with WND, rights have reverted back to its author, Steve Peacock.

11/29/2013

Supporters of Barack Obama tout his dedication to the responsibilities of the presidency by noting that he had taken 96 days of vacation at the point in his term that President George W. Bush had taken a reported 335.

But they admit that 51 of Bush’s trips were to his Texas ranch, while records show that Obama’s destinations have ranged from exotic European and African locales to pricey digs to Hawaii, where he’s sometimes traveled separately from his family, effectively doubling transportation costs for taxpayers.

The records released are partial, meaning no firm travel-expense total can be assembled. But individual cases are revealing.

09/29/2013

It’s
an expenditure of only $100,000 – mere pocket change in the vast
labyrinth of federal spending – but the funds are for the creation of a
manual to teach people how to get more money from the U.S. government.

And the recipients aren’t even citizens of the United States.

The U.S. Trade & Development Agency, an independent White House
agency, is laying the foundation for the government of Mexico to infuse
hundreds of billions of dollars into modernizing its roads, bridges and
other critical infrastructure.

08/17/2013

Project is to assess south-of-the-border social conditions

The Obama administration intends to keep contractors on
stand-by to help officials evaluate conditions on the Mexican side of the U.S.
border, but U.S. companies are not allowed to apply for the work.

Tracking remittances – funds sent over a distance – from the
U.S. to Mexico is one of several possible research and consulting services that
Obama through the U.S. Agency for International Development may solicit.

Such a task will not support, for example, tax- or
drug-enforcement operations. Instead, it would help determine the extent to
which the funds subsequently are “invested into social or community development
projects” in Mexico, according to a Request for Quotations that that U.S. Trade & Aid Monitor discovered
via routine database research.

Only Mexican organizations – or, at the very least, groups
based in Mexico that are majority owned or managed by Mexican citizens – may
submit responses to the solicitation, the Scope of Work emphasizes.

USAID/Mexico needs a “local quick-response mechanism” to
support projects not already covered under other agency activities, the
document says.

Rather than awarding contracts, USAID intends to issue
“blanket purchase agreements,” or BPAs, to complement U.S. Mission endeavors in
unrelated major programs to reduce greenhouse gas emissions; boost economic
competitiveness; mitigate the impact of crime on communities; and support the
government of Mexico’s implementation of constitutional criminal-justice
reform.

In addition to remittance tracking, other issues potentially
requiring “analyses, assessments, and special studies” include:

Outlook for local – meaning Mexican – economic opportunities
along the northern border;

Impact of U.S. economic trends on the economy in northern
Mexico;

Internal migration trends in Mexico and their impact on
crime prevalence;

Economic growth forecasts in the northern Mexican states in
the context of a U.S. economic rebound;

Tracking violence against journalists and human rights
advocates and assessing existing measures designed to protect them.

Case studies on youth and unemployment, school desertion
rates and victim assistance services are among other possible topical areas for
which Mexican vendors may be eligible for BPAs.

The project examples are for “illustrative purposes” only,
the USAID document says, and BPAs may or may not be granted for such
activities.

Though USAID did not disclose an estimated cost of the
five-year endeavor, the agency said individual BPAs will not exceed $150,000.
The deadline for contractor proposals is Sept. 9.

In other U.S.-Mexico assistance business, the State of
Puebla Secretariat of Transportation will leverage a $455,000 grant from the
U.S. Trade & Development Agency to conduct a feasibility study of a
proposed “intelligent transportation system” project.

USTDA agreed to give the grant to Puebla authorities – who
must hire a U.S. contractor – because “Puebla’s demand for public
transportation is expected to increase at an even higher rate than its
population growth,” the agency said in a solicitation.

The development of bus rapid-transit systems along six of
the state’s key corridors “is expected to provide significant benefits to
Puebla’s population in terms of improved convenience and safety, shorter travel
times, and reduced environmental impacts.”

USTDA earlier this summer separately began evaluating
contractor proposals to conduct a “definitional mission,” or DM, on behalf of
the Mexican Association of Railroads.

The $50,000 DM will help the agency to decide whether to
help fund a variety of other projects that could “support the development of
Mexico’s freight rail system, which is a critical component of Mexico’s economy
and trade.”

Potential projects include assessments of railroad
infrastructure “to accommodate the transportation of various oil and gas
products” as well as “environmental technologies for the development of green
railroad infrastructure, including green locomotives.”

The Narcotics Affairs Section at the U.S. Embassy in Mexico
City is soliciting the services of an individual vendor to help oversee
counter-narcotics and anti-trafficking contracts.

The deputy contracting officer’s representative will
supervise a team of government procurement specialists. The team monitors the
performance of contractors hired by the U.S. Department of State’s Bureau of
International Narcotics and Law Enforcement Affairs.

A similar version of this article originally was published via WND.com on August 14, 2013. Under agreement with WND, rights have reverted back to the author, Steve Peacock.

04/30/2013

In terms of global competitiveness, Mexico ranks 58th among 142
nations—and U.S. taxpayers are stepping in to help raise that ranking.

Increased credit access, especially for small and medium-sized
businesses, is one of the targeted improvements the Obama Administration
is hoping to accomplish through the Mexico Competitiveness Project II,
or MCP II.

A $22 million contract that the U.S. Agency for International
Development (USAID) awarded to Abt Associates, Inc., will support
Mexican-government efforts to help businesses as well as to institute
system-wide reforms.

02/18/2013

As the U.S. Department of Homeland Security expands its
outsourcing of detention across the
nation, potential contractors are being forewarned to abide by the Obama
administration’s kinder, gentler approach to detaining illegal aliens.

DHS Immigration & Customs Enforcement most recently
embarked upon the outsourcing plan in Georgia, where it will continue to push
the administration’s reform agenda to create a civil, rather than penal,
processing system.

According to contracting documents that U.S. Trade &
Aid Monitor located through routine database research, the Georgia outsourcing
endeavor requires providers to offer detainees, among other perks, “abundant
natural light throughout the facility [and] ample indoor and outdoor recreation
that allows for vigorous aerobic exercise with extended hours of availability.”

ICE recently issued a Request for Information from
potential contractors in which the agency intends to assign detention
responsibilities to private sector entities that will build new facilities,
renovate existing structures or leverage a combination of the two.

The agency acknowledged that some detainees may have a
criminal history or suffer from mental illness. In those cases, it would
require the contractor to separate such persons into a medium- or
maximum-security area.

Other detainees, however, would be accommodated with
various services and conditions, such as:

Four hours per day of outdoor recreation and ideally a
minimum of two hours recreation in a gymnasium during inclement weather.

Private showers and restrooms (where practicable).

Cafeteria-style meal service.

Non-institutional detainee clothing.

“Contact visitation,” including special arrangements for
visiting families, with extended hours including nights and weekends.

“Enhanced programming,” including religious services and
social programs and dedicated space for religious services.

ICE tentatively is looking for space in Georgia to hold
about 2,000 male detainees – up to 600 who would be categorized a low-security,
900 as medium-security and 400 designated as a high-security population.
Capacity for an additional 100 detainees would be divided between
administrative detention and mental health units.

“They have a lot of questions about why our immigration
laws have not always been sufficiently enforced.”

Goodlatte pointed out that while reform could greatly
affect U.S. citizens, legal residents, and illegal aliens alike, he affirmed
the principle that “America is a nation of immigrants. … But we are also a
nation of laws.”

Emily Tucker, DWN director of policy and advocacy, said
in a statement: “While we are excited about the momentum to finally create a
path to citizenship for millions of people, immigration reform must include the
reform of our wasteful and inhumane detention and deportation system.

“Neither the White House’s nor Senate’s plans respond to
years of community outrage about border and interior enforcement programs that
have separated families, violated due process rights, and led to serious human
rights abuses,” she said.

The DWN statement indicated that the committee reportedly
is due to introduced a draft immigration-reform bill this week.

The Heritage Foundation says, “So far there is no actual
bill – just a set of “principles” for the promised legislation.”

Similarly, she added that the White House recently
announced its own set of immigration reform principles, while promising to
introduce an “even more comprehensive bill if Congress does not move fast
enough.”

Zuckerman warned, however, that “if both initiatives do
nothing more than reintroduce confusing, complicated, and contentious bills
similar to the failed ‘comprehensive’ bill of 2007, then our nation will be
poorly served by these latest efforts.”

A similar version of this article was published via WND on Feb. 15, 2013. Under agreement with WND, rights have reverted back to the author, Steve Peacock.

10/05/2012

Continued modernization of the Mexican criminal justice system purportedly will help stem "the drug-fueled
violence that has threatened citizens on both sides of the border," according to the Obama Administration. Obama through the U.S. Agency for International Development (USAID) consequently has launched a new program called the Mexico Promoting Justice Project, also known as PROJUST, which will attempt system reform in several Mexican states.

PROJUST will infuse an unspecified level of additional taxpayer dollars to "support comprehensive criminal justice
reform that adheres to Mexican and international human rights standards
implemented at state and federal levels."

USAID/Mexico seeks to enhance broader U.S. and Mexican government efforts "to mitigate conflict,
reduce impunity, and promote a more transparent and efficient justice system." PROJUST specifically will support the Merida
Initiative, a partnership the two nations launched in 2008 to share
such responsibilities.

10/07/2011

The House Foreign Affairs Committee on Thursday, October 13, will host a hearing titled, “Emerging Threats and Security in the Western Hemisphere: Next Steps for U.S. Policy.” The committee announced that it will examine “current trends and security challenges in Latin America, including drug trafficking, extremism, illicit financing, and the increasing influence of rogue regimes.” It will review U.S. security assistance and policy in Latin America and the Caribbean, and U.S. priorities in the region.

The following witnesses have been called to testify:

1) The Honorable William R. Brownfield, Assistant Secretary, Bureau of International Narcotics and Law Enforcement Affairs, U.S. Department of State;

08/09/2011

The U.S. Trade & Development Agency (USTDA) is weighing whether it should help finance a trio of energy projects in Mexico; however, prior to making those decisions, the agency will award consulting contracts to U.S. vendors to assess the viability of those respective endeavors.

The first initiative is titled the “Zacatecas Wind Power Project Feasibility Study,” whose stated objective is to:

enable the development of a 70 MW wind power generation project in the Municipality of Zacatecas. The Feasibility Study will allow the Grantee to assess available wind power resources, verify the power demand profile, evaluate the financial value of wind power in comparison to existing power supply arrangements, and draft legal documents and agreements.

A $501,000 USTDA-funded grant will be used to pay the selected contractor on behalf of the municipal government of Zacatecas. (Solicitation #2011-51023A)

enable the development of a 3 MW landfill gas collection and power generation pilot project in the Municipality of Zacatecas. The Feasibility Study will allow the Grantee to assess recoverable landfill gas resources, conduct a preliminary conceptual design, and draft legal documents and agreements.

The municipal government of Zacatecas likewise will reap the benefits of a USTDA-funded grant, in this case via a $278,000 payment to a selected contractor. (Solicitation #2011-51022A).

The third Mexican project that USTDA unveiled is the Baja California Wind Power Project Feasibility Study, whose stated objective is to:

enable the supply of 100 MW of wind power to state government office buildings and facilities in the State of Baja California in Mexico. The Feasibility Study will allow the Grantee to assess available wind power resources, verify the power demand profile, evaluate the financial value of wind power in comparison to existing power supply arrangements, and draft legal documents and agreements.

The firm selected will be paid via a $374,000 USTDA grant on behalf of the state government of Baja California, Mexico, in conjunction with that government’s State Energy Commission. (Solicitation #2011-51021A).

06/28/2011

The U.S. government is deploying law enforcement advisors to Mexico to assist that nation in stepping up activities of an anti-crime endeavor known as the Merida Initiative. The U.S. Agency for International (USAID) is recruiting private contractors capable of carrying out the duties of a pair of positions titled: (1) Senior Crime Prevention Advisor/Pillar IV Team Leader (Solicitation #SOL-523-11-000003); and: (2) Senior Rule of Law Advisor/Pillar II Team Leader. (Solicitation #SOL-523-11-000002).

a multi-year program to provide equipment and training to support law enforcement operations and technical assistance for long-term reform and oversight of security agencies. In 2008, Congress approved an initial $400 million for Mexico and $65 million for Central America, the Dominican Republic, and Haiti. In 2009, Congress approved $300 million for Mexico and $110 million for Central America, the Dominican Republic, and Haiti. In 2010, $450 million for Mexico and $100 million for Central America has been requested from Congress.

Both advisor slots pay in the $84,697–$110,104 range.

FOR ADDITIONAL COVERAGE OF THE U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT, PLEASE VISIT THE MONITOR'S USAID PAGE.